In re Guzmán Juarbe
In re Guzmán Juarbe
Opinion of the Court
delivered the opinion of the Court.
By virtue of our order of July 22, 1957, the Fiscal of this Court filed a disbarment proceeding against Antonio Guzmán Juarbe, attorney at law, preferring the following charges:
“First Charge
“6. — The respondent, Antonio Guzmán Juarbe, voluntarily, maliciously, and knowingly, violated the oath which he took as an attorney at law on April 9, 1951, and, specifically, Canon No. 6 of the Canons of Professional Ethics, 48 P.R.R. XI, XIII, leaving the interests of his client, Juan Carides Martinez, in
“Second Charge
“7. — The respondent, Antonio Guzmán Juarbe, voluntarily, maliciously, and knowingly, violated the provisions of the act which requires court authorization to settle and compromise the interests of a minor — 31 L.P.R.A. § 786, p. 531, by joining as coplaintiff minor Juan López Varela in Segundo Laureano et als. v. Juan Carides et als., civil case No. S.C. 56-329, damages, causing him to appear in the complaint in his own name and capacity, which he did not have under the law, and notwithstanding the fact that the father of the said minor lived in Isabela, Puerto Rico, he was not caused to appear in behalf and representation of his minor son, as required by law. But, on. the contrary, the said respondent, together with the attorneys for the defendants, on June 26, 1956 subscribed and filed in Court, in the name and representation of all the plaintiffs, among them minor Juan López Varela, a motion for judgment by stipulation, agreeing with the other party that the Great American Indemnity Co. should pay to the said minor the sum of $100 and the U. S. Casualty Company the sum of $50 as indemnity for the damages suffered by him, without the proper court authorization required by law in such cases. The respondent permitted minor Juan López Varela to collect on June 29, 1956, the amount stipulated for the damages and to sign personally on that date proper release, despite the fact that it was not until the following day, June 30, 1956, that the respondent, Antonio Guzmán Juarbe, acting this time as notary public, set
The respondent answered denying the charges and setting forth the following:
“Special Defenses and New Matters
“In order to acquaint this Hon. Court with all data, facts, and circumstances relating to his professional conduct with respect to Juan Carides Martínez and the other litigants involved in the automobile accident which occurred on May 5, 1955, the appearing party hereby sets forth the following special defenses and informs that his professional conduct in connection with his legal representation was as follows:
“A. — On May 26, 1955, Juan Carides Martinez called at the law office of the appearing party. He requested his professional services to represent him in a criminal case before the District Court of Puerto Rico, Aguadilla Part acting in Isabela, for an alleged violation of § 17(a) and (e) of the Automobile and Traffic Act of Puerto Rico. On that date Carides Martinez explained to the appearing party, in preliminary form, the manner in which the accident had occurred. The appearing party agreed to represent Carides Martinez in the criminal case. The hearing was set for June 6, 1955.
“The appearing party assumed his representation gratuitously after Carides stated that he would engage him to represent him in the civil action which might arise as a result of the accident. Subsequent to May 26, 1955, the appearing party, upon organizing the evidence in the criminal action, learned that the witnesses were'the same persons who suffered injuries in the same accident. After the hearing of the criminal case on June 6, 1955, the court acquitted Carides Martinez. That same day, after the hearing of the criminal case, Carides Martinez and the other injured persons called on the appearing party at his office in Isabela. As a result of that visit, the
“On April 9, 1956, he filed the complaint in representation of the seven injured persons against Carides Martínez and the company with which his vehicle was insured, and Valenciano González and the company with which his vehicle was insured, (civil case No. S.C. 56-329, Superior Court, Aguadilla Part). On April 29, 1956, the marshal of the Superior Court, Agua-
“B. — The appearing party admits in all fairness that he joined in the complaint all the plaintiffs as being of legal age. The appearing party acted on the basis of the information which the aggrieved parties furnished to him. The appearing party admits that when he subscribed on June 26, 1956 the stipulation on judgment by compromise, he still caused them to appear as being of legal age. The appearing party continued acting on the basis of the information originally furnished by the aggrieved parties. It was not until June 29, 1956, that the appearing party learned that Juan López Varela was under 21 years of age. On that date the releases connected with the insurance companies of Valenciano González were signed. The releases of the other insurance company were not signed on that date. On that day, June 29, 1956, Juan López Varela did not collect the amount of compensation to which he was entitled, although he did sign a release in favor of Compañía Carrión. The appearing party admits that he did not apprise the Superior Court of Puerto Rico, Aguadilla Part, of the existing situation with respect to plaintiff Juan López Varela. He alleges, however, that the following day, June 30, 1956, he authorized as a notary public deed No. 15, in which the appearing parties were Félix López Pérez, father of Juan López Varela, and Juan López Varela himself. On June 30, 1956, after the deed of emancipation was executed, Juan López Varela received, for the first time, part of the compensation to which he was entitled for the damages sustained. On July 12, 1956, the court rendered judgment by stipulation as submitted. On that date, Juan López Varela was already emancipated. The appearing party at no time had the deliberate purpose of deceiving the court. The appearing party honestly believed that, once the deed of emancipation was signed, Juan López Varela was competent and that notice thereof was unnecessary.
“C. — In the whole transaction connected with the automobile accident which occurred on May 5, 1955, the appearing party only collected the fees agreed upon with his clients, and none of the appearing parties sustained any financial loss.
“D. — When the facts related occurred, the appearing party had been practising his profession for four years.
“E. — The appearing party at all times acted in good faith in the entire conduct of the case. He never had in mind or in his spirit any intention of violating the oath which he took as an attorney at law and notary public, and his conduct was always moved by a desire to serve his clients with loyalty and honesty. This averment is strengthened by the position taken by the appearing party in submitting his memorandum of September 4, 1956, in answer to the letter of August 31, 1956 from the acting clerk of this Hon. Court.
“F. — The appearing party, conscious of his moral responsibility as attorney at law and notary public in the exercise of his profession, believes that any omission or fault of a technical character which he may have committed in his professional conduct of this litigation was not moved by a desire to derive any financial profit or to injure the rights of his clients or the rights or interests of Juan Carides Martinez.”
By order of January 23, 1958, this Court appointed Superior Judge J. Martin Almodovar to act as Master and to hear and receive all the evidence which the parties might wish to submit, certifying and transmitting the same to this Court with his findings of fact.
Hearings were held before the Master who, after considering the oral and documentary evidence submitted by the parties, made the following findings of fact:
“The respondent, Antonio Guzmán Juarbe, is an attorney at law and was authorized to practice the profession on April 15,
“On May 5, 1955, while Juan Carides Martinez was operating his vehicle, he was involved in an automobile accident, as a result of which he and passengers Victor Monroig, Teodoro Concepción, Rosendo Monroig, Ramón Sánchez Pérez, and Juan López Varela were injured. A complaint was filed against Juan Carides Martinez for a violation of the Automobile Law. The - defendant was represented by the respondent at the trial held on June 17, 1955, and he was acquitted on the same date.
“Juan Carides Martínez and the other persons injured in the accident, who were named as witnesses for the prosecution in the complaint against the said defendant, met on that same day in respondent's office. The respondent agreed to represent them and the latter to pay him 80 per cent of any amount awarded for damages. The service contract was subsequently amended. The plaintiffs had no financial resources and were unable to pay to the respondent any sum for the initial expenses of the suit. They bound themselves to pay him 50 per cent of any sums awarded; the respondent bound himself to pay all the expenses incurred until the termination of the litigation. The action terminated on June 26, 1956 by virtue of a stipulation of compromise.
“The respondent represented Juan Carides Martinez since June 15, 1955, and he sent a certificate to the U. S. Casualty Company, the insurer of the vehicle, together with a report on the accident.
“It was .not until April 9, 1956, that the complaint by Juan López Varela et al. was filed against Juan Carides Martinez et al. On -April 28 of that year the defendant was duly served with notice thereof by the marshal, Miguel Méndez Cabrera, who, after delivering copy of the complaint and summons, informed him that an answer was due within 10 days.
“In October 1955, Antonio Guzmán Juarbe advised Juan Carides Martinez to employ another attorney and recommended José Veray, Jr. The respondent arranged personally for an interview between that attorney and his client, Juan Carides Martinez. Despite the steps taken by the respondent, the latter never called at the office of Veray, Jr.
“Six months elapsed from October 1955 to the filing date of the complaint. During that time the respondent took steps
“On more than one occasion Juan Carides Martinez was agreeable that the respondent should represent him and the other injured parties, and insisted that he should act as his attorney after Guzmán Juarbe informed him of the existing conflict. He assumed that the respondent continued acting as his attorney, and he so believed until June 29, 1956, when payment was made to the plaintiffs by virtue of a stipulation subscribed by the parties on June 16, 1956. On that date he called at the respondent’s office in order to collect his share of the sum awarded by the insurance companies, and it was on that date that the respondent handed to him the papers, documents, and other effects in his possession.
“It was not until June 29, 1956, that Carides Martinez for the first time took steps to engage another attorney. In view of his inability to engage an attorney, he filed a complaint against Antonio Guzmán Juarbe in the Supreme Court of Puerto Rico.
“As a result of that complaint, on August 31, 1956, the Supreme Court wrote to the respondent and the latter filed a memorandum on September 4 of that year setting forth a statement of the facts as he understood them. An investigation was conducted, as a result of which the complaint giving rise to this report was filed on September 20, 1957.
II
“With reference to the second charge, the Master makes the following findings of fact:
“Juan López Varela was caused to appear as being of legal age in the complaint filed in civil case No. 56-329 of the Superior Court of Puerto Rico, Aguadilla Part. (See first allegation of the complaint.) On April 9, 1956, the said Juan López Varela was only 18 years of age.
“The respondent prepared the report of the accident in the name of Juan Carides Martinez for the U. S. Casualty Co., one of the insurance companies. According to the report, Juan Varela is 36 years old. This information was furnished to him
“On June 26, 1956, the respondent, in representation and on behalf of all the plaintiffs, among them minor Juan López Varela, filed a motion for judgment by stipulation whereby it was agreed that the American Indemnity Co. would pay to the said minor the sum of $100 and the U. S. Casualty Co. the sum of $50 for all the' damages sustained by him; and by virtue of that stipulation, on June 29, 1956 the said minor signed personally the corresponding release without requesting proper judicial authorization from the Superior Court of Puerto Rico, Aguadilla Part.
“On June 26, 1956, the filing date of the stipulation in which Juan López Varela was caused to appear as being of legal age and a compromise was reached without obtaining judicial authorization, it had been agreed, as part of the compromise, to execute a deed of emancipation of Juan López Varela who on that date was 18 years of age. (See ■Mr. Aldrey’s memorandum of June 26, 1956, which appears in ^Exhibit B of complainant.) It is to be noted that on the date of the stipulation the fact of the minority was also known, at least, to one of the attorneys for the defendants. Notwithstanding this fact and the agreement to execute that deed, the respondent did not give notice to or inform the Superior Court, Aguadilla Part, that the said Juan López Varela was a minor, or request proper judicial authorization for the purpose of carrying out the compromise. When the respondent allowed the minor to sign a release, he knew that he was under age and that he could not perform such act without complying with the legal requirements. As a result of the compromise of the suit, the respondent prevented the Superior Court, Aguadilla Part, and the prosecuting attorney of this court from passing upon the usefulness and advisability to the minor of such compromise.”
This Court granted 10 days to the parties to file objections, if any, to the Master’s report. The complainant appeared by memorandum, informing that he had no objections to the Master’s findings of fact. The respondent has not filed objections to such findings.
“6. Adverse Influences and Conflicting Interests. — It is the duty of a lawyer at the time of retainer to disclose to the client all the circumstances of his relations to the parties, and any interest in or connection with the controversy, which might influence the client in the selection of counsel.
“It is unprofessional to represent conflicting interests, except by express consent of all concerned given after a full disclosure of the facts. Within the meaning of this canon, a lawyer represents conflicting interests when, in behalf of one client, it is his duty to contend for that which duty to another client requires him to oppose.
“The obligation to represent the client with undivided fidelity and not to divulge his secrets or confidences forbids also the subsequent acceptance of retainers or employment from others in matters adversely affecting any interest of the client with respect to which confidence has been reposed.” 48 P.R.R. XI, XIII.
The courts have required of lawyers the most strict compliance with the obligations imposed on them by this canon. Attorney-client relations are based fundamentally on mutual confidence. Hence, it is the duty of a lawyer, when engaged, to disclose all the circumstances of his relations to the parties as well as any interest in the controversy, for such action will enable the client to make a better and more conscientious selection of counsel. Under the third paragraph of Canon 6, it is the duty of the attorney to represent the client with undivided fidelity, and he is forbidden to divulge the secrets and confidences reposed in him. And this prohibition subsists even after the termination of the attorney-client relations. That is why the attorney is forbidden to accept retainers or employments from others in matters adversely affecting any interest of his former client with respect to which confidences have been reposed. The fidelity of the attorney to his client in matters which the latter has con-
Some difficulties have arisen in the interpretation of Canon 6 when the courts, in incidents of disqualification of attorneys, have been faced with a decision as to what is ■“an interest of the client with respect to which confidence lias been reposed.” Two facets have been recognized to the problem, to wit: (1) when the attorney acts adversely to the .former client’s interest in the same matter or cause of action. In such cases the courts will exclude the attorney from the ¡subsequent representation of the new client, whether or not .he actually received any confidential information from the former client; and (2) when the attorney acts adversely to the former client’s interests in a different matter or cause of action in which confidential information revealed by the first client might or might not be of importance. Different situations have arisen under this category. Some courts have required the first client to make a showing of the confidential information which will be used against Kim before the attorney in the case will be excluded. Other courts have taken a different view, based precisely on the fact that to compel the client to show the confidential matters would require the disclosure of the very matters intended to be protected by the rulé.
In an incident to disqualify an attorney who had previously represented the plaintiff, the following language of the Supreme Court of Illinois is cited with approval in Lamb v. Isley, 114 S.W.2d 673:
“ . . . The rule has long been firmly established that an .attorney cannot represent conflicting interests or undertake to
See, also, Consolidated Theatres v. Warner Bros. Cir. Man. Corp., 216 F.2d 920; Henry S. Drinker, Legal Ethics, 104 et seq.; Frederick C. Hicks, Organization and Ethics of the Bench and Bar 341-60.
The Rules of Professional Conduct of California contain a similar prohibition to that found in the third paragraph of Canon 6, regarding the acceptance by the attorney of employments of another in matters adversely affecting any interest of the client in reference to which confidence has
“A reasonable construction of this rule suggests that the subsequent representation of another against a former client, is forbidden not merely when the attorney will be called upon to use confidential information obtained in the course of the former employment, but in every case when, by reason of such subsequent employment, he may be called upon to use such, confidential information. In subdivision 5 of section 282 of the Code of Civil Procedure it is declared to be the duty of an. •attorney ‘to maintain inviolate the confidence, and at every peril to himself, to preserve the secrets of his client.’ See, also, Anderson v. Eaton, 211 Cal. 113, 293 P. 788. In Wutchumna Water Co. v. Bailey, 216 Cal. 564, 15 P.(2d) 505, 509, it is declared that ‘an attorney is forbidden to do either of two-things after severing his relationship with a former client. He-may not do anything which will injuriously affect his former client in any matter in which he formerly represented him,, or may he at any time use against his former client knowledge or information acquired by virtue of the previous relationship.’ The circumstances giving rise to the first two charges-of misconduct were such as might suggest or require that petitioner in the prosecution of the damage suits make use of information acquired by him while representing the respective, defendants in the prior penal proceedings.”
The facts proved, according to the findings of the Master,, are sufficient to establish that the respondent’s conduct in
Nor is there any question that in the criminal action against Carides the respondent obtained, or should have obtained from the latter, confidential information which he ■could have used against him in the civil action.
We are not therefore concerned with a case in which an .attorney commits an involuntary violation of Canon 6
The second charge was also proved. According to the Master’s correct finding, when the respondent filed in court the motion for judgment by stipulation on behalf of all the plaintiffs, among them minor Juan López Varela, a fact of which the respondent was aware and of which he did not inform the court, he prevented the latter from passing upon the need and advisability to the minor of such transaction. See Cruz v. Central Pasto Viejo, Inc., 44 P.R.R. 354. We can not sanction the respondent’s conduct. He failed to do his duty to the client and the court.
Considering that the respondent is a relatively young lawyer in the practice of his profession, that he did not act in bad faith by instituting a civil action against his former client Juan Carides Martínez, and that there is no showing of fraud in compromising the suit on behalf of minor .Juan López Varela, as well as the other attendant circumstances, the respondent is suspended from the practice of law for a period of six months. ■ ■
The text of this canon is identical with that of Canon 6 of the Canons of Professional Ethics of the American Bar Association.
Wutchuma Water Co. v. Bailey, 15 P.2d 505; United States v. Bishop, 90 F.2d 65; Watson v. Watson, 11 N.Y.S.2d 537.
See the commentary on the case of T.C. Theatre Corp. v. Warner Bros. Pictures, Inc., 113 F. Supp. 264, in 26 Rocky Mt. L. Rev. 195 (University of Colorado School of Law, and Attorney Disqualified Where Past Legal Association Results in Conflict of Interests, 6 Syracuse L. Rev. ;360, No. 2.
Rule 5 of the Rules of Professional Conduct of California provides:
“A member of The State Bar shall not accept employment adverse-to a client or former client, relating- to a matter in reference to which he has obtained confidential information by reason of or in the course-of his employment by such client or former client.”
Case-law data current through December 31, 2025. Source: CourtListener bulk data.